There are a lot of reasons behind the changes that take place. The change should always be for the sake for progress and development. The major reasons behind this change could be financial, or relating to the market position of the company. It might need to cut its capital flow, address new and different clients, need a change of results. For this very purpose, the organization must implement these changes on a wider level rather than implementing them on a cluster or a small group of individuals. Also the whole process should be very planned, systematic and well executed. (McNamara)
Purpose of Study
The term Organizational Development is the process which focuses on the development of any organization. It is the process which aims at bringing the efficiency in the working of the organization as well as the human resource in the organization. OD requires a lot of research to be done about the previous working of the organization. The first step is to identify the weaknesses and learn from the past mistakes. A lot of OD activities could be there, both for groups and individuals. OD could be achieved through various processes. A few illustrated are:
- Human Resource Development: The biggest asset of any organization is its human resource. These could be trained by counseling, coaching, mentoring, motivating etc. Using the following methods to maximum could bring a change in attitude of the organization
- Strategic Development: The policies of the company should be studied. New business plans should be employed to give the organization an edge. Cultural changes, planning innovatively, organizational alliances and planning can further be used to strengthen the values and the policies of the organization. (McNamara, Organizational Change and Development)
The Bureaucratic model of Business administration relies on set of rules, and works according to them only. The system is rigid and is sometimes frowned upon. Many companies today follow this particular model of business administration while some have avoided it for various reasons. Bureaucracy is often referred to as labor applied to organization. The system works on hierarchy where the administration is divided into levels. Each level has its own controls and has controls over the level below it. Responsibilities in each level are properly distributed and are to be followed strictly. Here there is no scope for individual. Rather the level exists. (kimble)
Importance of the project Area
Another method of managing an organization is the contingency approach. Its dynamics have been discussed in this paragraph
In this approach it is believed that there really is no perfect way to run an organization. The course of action is dependent on the current situation. The situation is analyzed both internally and externally. Over the last half of a century many contingency approaches have come into the picture. The earlier theories were opposed on the sole basic fact that the managerial and the leadership positions are heavily affected by the current nature of the environment and its various aspects. There is no comparative analysis to suggest that one way of leadership is better than the other. It all depends on the situation. So there isn't no absolute best or elite when it comes to the technique of leadership. According to the contingency theories environment decides the nature of best possible leadership in a given situation. The organization must decide the way that it must function depending on the type of environmental variations and attributes. So according to the contingency approaches a good leader is someone who can analyze a given situation and the situational parameters and come out with an optimal solution to the problem while keeping the work staff motivated at the same time.
There are many factors that induce a change in the organizational culture. Some of them have been described in the next paragraph. Generally there is a trend that a change in an organizational culture is preceded by an eye grabbing or eye catching event. Sometimes budgetary constraints, time or its shortage, global phenomena and natural disasters are the cause of the change. With every consequential global event the work dynamics of an organization are deeply affected.
The first and one of the most prominent is the want to have opportunities to grow into a bigger opportunity each time we encounter it.
Suppose that there are budgetary constraints, and then the major change that happens in the leadership and management strategies is the alleviation in the motivation strategies. At this sensitive time an employee must not lose faith in the company. To ensure this his motivation levels must be worked upon. The employees must be motivated in such a way that they remain faithful to the company while still giving their best in return to the company. The change here is the focus on motivation skills.
Similarly time is also important for the company. So the company's working is heavily dependent on its time scheduling. Deadlines have to be met every day so there is pressure to meet the time demands.
Money is always one of the most crucial factors .There is motivation for earning greater and greater profits
Analysis Collection and Interpretation of Data
One of the most important parameters in the growth of a company is their employees. The local people who are working for a company must be accustomed to change. They must work at a level that is flexible and they must know how to incorporate changes in his work. The company may want to solve the prevalent social challenges by taking on direct initiatives which have an impact on the UAE community as a whole.
A suitable example is the story of the advent of globalization and liberalization. . Within the last decade and with the rapid strides in globalization there has been rapid breaking of walls .There has been a rapid transition to free market based approach and the adoption of liberal trade policies in countries that had earlier bound by communist shackles like china, ex USSR and other countries. The world financial system has become so integrated that it is difficult to tell where one ends and the other starts.
The major reason for change in organizations is competition. The organizations have to keep reinventing themselves in order to survive in the market. This means that there would be dynamic changes within the organizational and the managerial structure of the company.
Similarly other factors like technical advancements and changes within a company are also very important in the recurring changes in the organizational behavior.
The last and but not the least is government legislations. Government changes and the passing of new bills cause both constraints and opportunities for the organization. In order to tackle these constraints and exploit these opportunities, organizational changes are required.
Every organization has a fixed timeline and during the course of that timeline, the organization has to evolve during these changes. These changes are generally laid out in terms of five year plans. After some time these changes start getting planned. In the end if these changes are planned, the company or the organization are benefitted to a great extent, and the changes should be planned and expected and not sudden and abrupt.
Generally change is resisted by an organization working monotonously. It is basically in the human nature to resist change. So a leader must be able to inspire confidence in his peers and his subordinates.
Curiosity is one of the factors propelling human growth .There is and always has been a desire to learn new ideas and methods about the different kinds of business methods and practices being followed in different geographies of the world. So we must change our techniques and methods likewise. This TQM approach is focused on just that. This is generally to inspire innovation and a sense of growth. Change brings new experiences which lead to overall growth of an organization.
The role of managers has become very important in today's world .They perform a very important function of bringing the change from the outside as well as inside. Change agents always require the competence to get the people involved in the project involved, to make sure their co-operation and commitment. This needs a very high competency as the criterion for the approval as well as soft skills, which are often summarized as emotional intelligence. This includes the ability to communicate, to understand and to consider the account opinions and others problems. Change projects require a great deal of factors and forces. These factors comprise the reasons and objectives for change, values, beliefs and routines of the people. Many change projects challenge the cultural system of an organization. Efforts to bring the change such as values lead to resistance. In projects related to technology it takes the acceptance of all the people that are being affected by such projects to make them successful. It is the change agent's task to create the acceptance and be the change .The factors required by mangers to be the change agent are:
- They should be sensitive in management perceptions and should know how to adapt according to market conditions.
- They should have clear and realistic goals.
- They should be flexible to respond to the changes without disturbing the overall setup.
- They should have the required communication skills to convey their message effectively
- They should have good networking skills.
- They should have good interpersonal skills. (Recklies)
MBO stands for Management by Objectives. MBO is a way of management that helps you to
Clearly focus on goals that can be achieved and helps to get the maximum output achievable through the available resources. It is a highly systematic and organized approach. MBO was first introduced by Peter Drucker. Drucker himself cautioned everyone against the overemphasis on the approach. Management by Objectives can only work only if you know your objectives. Management by Objectives guarantees that all the employees of an organization know about the objectives and long term goals of an organization .Management by Objectives works by stressing the alignment of an organization's goals. The focus of an organization that emphasizes MBO is in the results rather than the processes involved. The management in an MBO practicing organization sees to it that "negotiations" with its employees are on track. They do not; give a road map to be followed while the process is being followed. The employees are often encouraged to use their skill and break down the long term goals in smaller time specific goals .MBO is used in organizations that are information based and also where they want to use the creativity of the workforce. Setting objectives is a very key component. Objectives are given in advance to the order defined in the hierarchy and value creation is given emphasis.
The SMART criterion is used to set goals. 'SMART' stands for Measurable, Specific, Achievable, Realistic and Time Specific.
An effective MBO is where the individual managers know about the goals laid out by the board. The whole process of goal setting has to be transparent and should build confidence in all the involved parties. It has to be dealt with integration of the middle and junior level management. An effective review system is the key to its success. There should be a proper criterion for proper measure of the performance. (What is MBO?)
At the core, Total Quality Management (TQM) is a very basic approach of management which is the key to long-term success guaranteed through customer satisfaction.
In a TQM effort, all the members of an organization have to participate in improving all the processes, products and culture in which they are working it to make it into something favorable for everybody.
The way for implementing the approach comes from teachings of quality leaders as W. Edwards Deming, Philip B. Crosby, Armand V. Feigenbaum, Joseph M. Juran ,Kaoru Ishikawa . A very core concept in implementing the TQM approach is the Deming's 14 points, a set of practices to help companies increase their productivity:
- Creation of constancy of purpose and involvement for improving the overall products and services.
- Adopting newer philosophies in the ever changing world.
- Cease to depend on the inspection to achieve the quality that is required to survive.
- Ending the practice of giving the business on the price alone and limit the total cost by working with a single company who supplies them with everything.
- Improve yourself constantly and every process that is part of planning, production and service.
- There should be training institute on the job.
- Adoption of institute leadership.
- Driving out fear.
- Breaking down barriers among staff areas.
- Eliminate numerical quotas for the people working for the company. (Total Quality Management)
One of the most desired things humans want is power .Everywhere there is a fight for power and the best way to grab power is through politics. Power is created by social responsibility, behavior, control, organizational culture. Politics is created by a very personal structure surrounded by traditional self-indulged positions and by applying personal values and your culture into business matters.
Various factors are playing a very important role in the change that is being brought about in the 21st century. One of the biggest factors is the technology on which we have become so dependant. Next are the physical borders which are diminishing day by day by ever increasing means of faster communication. You can be at multiple places at multiple times .The militarization of the world with the nuclear warheads is also playing a very major role in the power defining patterns of the world>One of the most major things changing the world is the struggle for the Oil .There have been numerous wars for it and there will be many more .With the water resources diminishing all over the world the world over countries are trying to grab whatever share of the water is there.
- Carter McNamara. (n.d). Basic Context for Organizational Change, Retrieved on April 20, 2010 from http://managementhelp.org/mgmnt/orgchnge.htm
- Carter McNamara. (n.d). Organizational Change and Development, Retrieved on April 20, 2010 from http://managementhelp.org/org_chng/org_chng.htm#anchor521307
- Chris kimble. (n.d), Managerial Solutions part 1: Scientific Management and the Bureaucratic Organization, Retrieved on April 20, 2010 from http://www.chris-kimble.com/Courses/mis/Bureaucratic_Organisations.html
- What Makes a Good Change Agent?. (n.d). Retrieved on April 20, 2010, from http://www.themanager.org/Strategy/change_agent.htm
- What is MBO?. (n.d). Retrieved on April 20, 2010, from http://www.chrmglobal.com/Briefcase/78/1/What-is-MBO-.html
- Total Quality Management. (n.d) Retrieved on April 20, 2010, from http://www.asq.org/learn-about-quality/total-quality-management/overview/overview.html